Bill of Lading deterioration of the goods is valid, if it is reasonable and

Magellan Mfg. Marketing Corp v. CA, supra. just under the circumstances, and has been fairly and
freely agreed upon.
Samar Mining Co., Inc. v. Nordeutcher Lloyd, et al., 132
Art. 1751. The fact that the common carrier has no
SCRA 529 (1984)
competitor along the line or route, or a part thereof, to
which the contract refers shall be taken into consideration
Contract: Contract of Adhesion
on the question of whether or not a stipulation limiting the
Sweet Lines, Inc. v. Teves, 83 SCRA 361 (1978) (Same as
common carrier's liability is reasonable, just and in
#107)
consonance with public policy.
Servando v. Philippine Steam Navigation Co., 117 SCRA Art. 1752. Even when there is an agreement limiting the
832 (1982) liability of the common carrier in the vigilance over the
goods, the common carrier is disputably presumed to have
Stipulations been negligent in case of their loss, destruction or
Civil Code deterioration.
Art. 1745. Any of the following or similar stipulations shall Art. 1757. The responsibility of a common carrier for the
be considered unreasonable, unjust and contrary to public safety of passengers as required in Articles 1733 and 1755
policy: (1) That the goods are transported at the risk of the cannot be dispensed with or lessened by stipulation, by the
owner or shipper; posting of notices, by statements on tickets, or otherwise.
(2) That the common carrier will not be liable for any loss,
destruction, or deterioration of the goods; Articles 350-352, 706-718, Code of Commerce
(3) That the common carrier need not observe any Sections 3-4, Carriage of Goods by Sea Act
diligence in the custody of the goods; Articles 17-19, 22, 24, Chapter 2, Warsaw Convention on
Air Transport
(4) That the common carrier shall exercise a degree of
diligence less than that of a good father of a family, or of a
H.E. Heacock Co. v. Macondray & Company, Inc., 42 Phil
man of ordinary prudence in the vigilance over the
205 (1921)
movables transported;
(5) That the common carrier shall not be responsible for Edgar Cokaliong Shipping Lines, Inc. v. UCPB Gen
the acts or omission of his or its employees; Insurance Co., supra.
(6) That the common carrier's liability for acts committed
Eastern Shipping Lines, Inc. v. The Nisshin Fire and
by thieves, or of robbers who do not act with grave or
Marine Insurance Co., et al., supra.
irresistible threat, violence or force, is dispensed with or
Belgian Overseas Chartering and Shipping, N.V. v. Phil
diminished;
First Insurance Co., supra.
(7) That the common carrier is not responsible for the loss, Shewaram v. PAL, 17 SCRA 606 (1966)
destruction, or deterioration of goods on account of the Northwest Airlines, Inc. v. Cuenca, 14 SCRA 1063 (1965)
defective condition of the car, vehicle, ship, airplane or China Airlines v. Chiok, 407 SCRA 432 (2003)
other equipment used in the contract of carriage. Santos, III v. CA, 210 SCRA 256 (1992)
United Airlines v. Uy, 318 SCRA 576 (1999)
Art. 1746. An agreement limiting the common carrier's
liability may be annulled by the shipper or owner if the
Evidence
common carrier refused to carry the goods unless the
Articles 353, 709-710, Code of Commerce
former agreed to such stipulation.
Sections 3, Carriage of Goods by Sea Act
Art. 1747. If the common carrier, without just cause, delays
the transportation of the goods or changes the stipulated De Guerrero, et al. v. Madrigal Shipping Co., Inc., 105
or usual route, the contract limiting the common carrier's Phil 485 (1959)
liability cannot be availed of in case of the loss, Phil Am Gen Insurance Co., Inc. v. Sweet Lines, Inc. et al.,
destruction, or deterioration of the goods. 212 SCRA 194 (1992)
Art. 1748. An agreement limiting the common carrier's
liability for delay on account of strikes or riots is valid. Receipt
Saludo, Jr. v. CA, supra.
Art. 1749. A stipulation that the common carrier's liability Wallem Phils Shipping, Inc., et al. v. Prudential
is limited to the value of the goods appearing in the bill of Guarantee & Assurance, Inc. et al., G.R. No. 152158 (07
lading, unless the shipper or owner declares a greater February 2003)
value, is binding.
Art. 1750. A contract fixing the sum that may be recovered. Title
by the owner or shipper for the loss, destruction, or Articles 1507, 1508-1511, 1513, 1515, Civil Code
Art. 1507. A document of title in which it is stated that the
goods referred to therein will be delivered to the bearer, or nevertheless be negotiated by the holder and is a
to the order of any person named in such document is a negotiable document of title within the meaning of this
negotiable document of title. Title. But nothing in this Title contained shall be construed
as limiting or defining the effect upon the obligations of
Art. 1508. A negotiable document of title may be
the carrier, warehouseman, or other bailee issuing a
negotiated by delivery:
document of title or placing thereon the words "not
(1) Where by the terms of the document the carrier, negotiable," "non-negotiable," or the like. (n)
warehouseman or other bailee issuing the same
Art. 1511. A document of title which is not in such form
undertakes to deliver the goods to the bearer; or
that it can be negotiated by delivery may be transferred by
(2) Where by the terms of the document the carrier, the holder by delivery to a purchaser or donee. A non-
warehouseman or other bailee issuing the same negotiable document cannot be negotiated and the
undertakes to deliver the goods to the order of a specified endorsement of such a document gives the transferee no
person, and such person or a subsequent endorsee of the additional right.
document has indorsed it in blank or to the bearer.
Art. 1513. A person to whom a negotiable document of title
Where by the terms of a negotiable document of title the has been duly negotiated acquires thereby:
goods are deliverable to bearer or where a negotiable
(1) Such title to the goods as the person negotiating the
document of title has been indorsed in blank or to bearer,
document to him had or had ability to convey to a
any holder may indorse the same to himself or to any
purchaser in good faith for value and also such title to the
specified person, and in such case the document shall
goods as the person to whose order the goods were to be
thereafter be negotiated only by the endorsement of such
delivered by the terms of the document had or had ability
endorsee. (n)
to convey to a purchaser in good faith for value; and
Art. 1509. A negotiable document of title may be
(2) The direct obligation of the bailee issuing the
negotiated by the endorsement of the person to whose
document to hold possession of the goods for him
order the goods are by the terms of the document
according to the terms of the document as fully as if such
deliverable. Such endorsement may be in blank, to bearer
bailee had contracted directly with him.
or to a specified person. If indorsed to a specified person,
it may be again negotiated by the endorsement of such Art. 1515. Where a negotiable document of title is
person in blank, to bearer or to another specified person. transferred for value by delivery, and the endorsement of
Subsequent negotiations may be made in like manner. (n) the transferor is essential for negotiation, the transferee
acquires a right against the transferor to compel him to
Art. 1510. If a document of title which contains an
endorse the document unless a contrary intention appears.
undertaking by a carrier, warehouseman or other bailee to
The negotiation shall take effect as of the time when the
deliver the goods to bearer, to a specified person or order
endorsement is actually made.
of a specified person or which contains words of like
import, has placed upon it the words "not negotiable,"
"non-negotiable" or the like, such document may Section 38, Negotiable Instruments Law